Turning Sour

Issue size : Rs 8 crore

Price : Rs 10, at par

Opens on : September 23, 1996

Listing at : Magadh, Calcutta, Mumbai, Ahmedabad

Lead manager : Rajashree Fiscal Services

The project has not been appraised by any FI or bank. The working capital needs are also yet to be

tied up.

Cilson Organics is going public issue to fund a project to make molasses-based industrial fermentaion alchohol, extra neutral alchohol, malt spirit, mineral water etc with a capacity of 22,500 KL per annum in Bihar. The project cost pegged at Rs 31.75 crore, will be met by Rs 8.35 crore from promoters, a Rs 12.25 crore foreign currency term loan from Association of Financial Consultants Inc, Philippines, and a Rs 1.5 crore term loan from Indian Renewable Energy Development Agency.

 

The company has a history of management acquisitions. This is the third promoter trying his hand. Both other promoters found that they did not have enough money to implement projects after they had taken over the managements. This project was started by previous promoters, who have already incurred expenditure of Rs 30 lakh before handing over the management.

A positive point with the promoters is that one of them has more than 50 years of experience in industrial alchohol. Another plus is that molasses requirement has been ensured with a firm allotment of 8 lakh quintals of molasses per annum with the state government. But that